Moscow authorities have denied rumors that the Red October area, which is so popular with the city’s artists and art lovers, is to be turned into an elite residential area.

The authorities have said they appreciate the area's cultural significance as it currently hosts dozens of galleries, TV channels and cultural centers. The only thing they need to tackle is the nightclub “Paradize”, which is located in the area, resulting in long traffic jams around it.

“A technical document was adopted last October,” Aleksandr Kibovsky, director of Moscow's Cultural Heritage Department, told RT. “It defines constraints on construction projects. None of the projects proposed so far comply with these restrictions. The earliest anyone can start building anything is summer 2013.”

Panic spread after one of Moscow’s newspapers heard that a new agreement on the area’s security has been signed, allowing developers to build a new residential complex at the site of the former chocolate factory.

There was widespread discontent among Muscovites at the rumors of a redevelopment project. Bloggers set up a Facebook page in protest against the project and started collecting signatures of those sharing their outrage – some even called for a rally.

In the 1970s, the area was the site of the famous Red October chocolate factory. When the factory moved out, developers tried to build an elite development there, but were stopped by the 2008 crisis. The offices in the area are rented by numerous TV stations, newspapers and art galleries.